Udyog Adhaar Registration and Benefits

Last Updated On: July 13, 2020, 11:23 a.m.
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                                                           UDYOG ADHAAR REGISTRATION 

 

What do you mean by Udyog Aadhaar?

Udyog Aadhar is a government registration that is provided along with a recognition certificate and a unique number in order to certify micro, small and medium businesses or enterprises. Udyog Adhaar is an Adhaar for a business that has a unique 12 digits Identification Number provided by the Ministry of MSME. It’s also called as MSME Registration. 

Benefits of Udyog Aadhaar:

  1. Reduced rate of Interest from banks
  2. Collateral free loans from banks
  3. Protection against delayed payments
  4. Fast resolution of disputes
  5. After getting registered with MSME, your business will be eligible for availing government scheme benefits which will include loans without guarantee, low-interest rates (subsidized rates) on loan, and easy loan
  6. The exemption under the direct tax laws
  7. Waiver of Stamp duty and registration fees
  8. You will get an exemption when your enterprise applies for government tenders
  9. Your company gains preference for government certification
  10. Enjoy other forms of subsidies that will help you in increasing your company’s revenue
  11. Financial backing from the government for participating in foreign business expos
  12. Reimbursement of payment made for obtaining ISO registration

Who should register for Udyog Aadhaar?

Any type of business entity can enroll for Udyog Aadhaar whether it is a Proprietorship firm, Hindu Undivided Family, Partnership Firm, Limited Liability Partnership, Co-operative, Private Limited, Public Limited, Self Help Group, Society, Trust.

The only thing that should be kept in mind is that your entity should be classified as micro, small, and medium enterprises.

Definition of Micro, Small, and Medium Enterprises:

Micro Enterprises – They are those enterprises whose Investment is up to Rs. 1 crore and Turnover is up to Rs. 5 crores.

Small Enterprises- They are those enterprises whose Investment is up to Rs. 10 crores and Turnover is up to Rs. 50 crores.

Medium Enterprises- They are those enterprises whose Investment is up to Rs. 20 crores and Turnover is up to Rs. 100 crores.

Documents Required when registering on Udyog Aadhaar:

  1. Aadhaar Number: 12 digit Aadhaar Number of the owner which is issued to the applicant by UIDAI
  2. Name: The name of the applicant as per Aadhaar Card
  3. Social Category Proof: Whether General, Schedule Cast, Schedule Tribe, Other Backward Classes
  4. Entity/Business Name: Name of your organization or entity which will also get printed on the MSME Certificate
  5. Organization Type: Type of organization whether it is Proprietorship firm, Hindu Undivided Family, Partnership Firm, Limited Liability Partnership, Co-operative, Private Limited, Public Limited, Self Help Group, Society, Trust
  6. Address: Business address
  7. Commencement Date: Date of start of the business
  8. Bank Account Details: Bank account details of the business including Bank account number and IFSC Code
  9. Main Business Activity: Whether the business is a manufacturer or service provider
  10. NIC 2 Digit Code: There are multiple National Industrial Classification Codes given in NIC handbook
  11. Number of employees: Total number of employees employed in a business
  12. Investment in Plant & Machinery: Total investment made in the plant, machinery, and equipment, etc.
  13. PAN number: PAN number is Mandatory for LLP, Company and Co-operative Society, and Optional for the rest.

How to Register on Udyog Aadhaar?

Step 1: Visit the site https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx

Step 2: Enter your 12 digit Aadhaar Number and Name as mentioned Aadhaar Card.

Step 3: Click on validate & Generate One-time password (OTP), you will receive OTP on your registered mobile number (i.e. registered with your Aadhaar Card). After that, you will need to select your social category.

Step 4: Fill your enterprise name which will get printed on your MSME registration. Also, we need to select the type of entity.

Step 5: Here you need to write your complete address of the business which would include district, state, pin-code, etc.

Step 6: Here you need to write the commencement date of your business.

Step 7: After the above details have been written, you need to provide bank account details of the business including IFSC code.

Step 8: It would involve selecting the type of your enterprise from the services sector or manufacturing sector.

Step 9: It would ask the information regarding the total investment made in the business and the total number of employees involved in the business.

Step 10: After all the above steps have been completed, you need to accept the declaration and press on submit button. Pressing the submit button ensures that your application for registration has been submitted.

After your application has been submitted, you will be allotted with UAN (Udyog Aadhaar Number) which will also be mailed to your registered email id.

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